Correlation Between Jiangxi Naipu and Cultural Investment
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Cultural Investment Holdings, you can compare the effects of market volatilities on Jiangxi Naipu and Cultural Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jiangxi Naipu with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Cultural Investment.
Diversification Opportunities for Jiangxi Naipu and Cultural Investment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Cultural is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Jiangxi Naipu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jiangxi Naipu Mining are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Jiangxi Naipu i.e., Jiangxi Naipu and Cultural Investment go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Cultural Investment
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 0.66 times more return on investment than Cultural Investment. However, Jiangxi Naipu Mining is 1.51 times less risky than Cultural Investment. It trades about 0.14 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.02 per unit of risk. If you would invest 2,815 in Jiangxi Naipu Mining on September 4, 2024 and sell it today you would earn a total of 175.00 from holding Jiangxi Naipu Mining or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Cultural Investment Holdings
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Cultural Investment |
Jiangxi Naipu and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Cultural Investment
The main advantage of trading using opposite Jiangxi Naipu and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu position performs unexpectedly, Cultural Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Jiangxi Naipu vs. Pengxin International Mining | Jiangxi Naipu vs. Western Metal Materials | Jiangxi Naipu vs. Heilongjiang Transport Development | Jiangxi Naipu vs. Ye Chiu Metal |
| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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